April 13th, 2023
The Right Place releases new regional business insights snapshot
Grand Rapids Regional businesses leaders report increased sales, projected growth
Businesses in Greater Grand Rapids are reporting strong confidence in the health of their companies and the economy at large, according to The Right Place’s recent business outreach to 163 local companies in the month of March.
Over the course of a year, The Right Place meets with an average of 500+ local companies. In March 2023, The Right Place intensified local business outreach to meet with 163 companies to form a snapshot of the health of the local economy. During these meetings, Right Place team members talk with companies about their future plans, and barriers to growth they may be facing, as well as connect them with the resources and support they need to thrive. While the details of individual meetings are confidential, The Right Place gathers quantitative data in aggregate form to provide a snapshot of regional business sentiment.
“The results from our recent business outreach are encouraging and demonstrate the strength and confidence of our local businesses,” said Rob Llanes, Senior Vice President of Business Development at The Right Place. “Increasing sales, easing talent challenges, and an overall increase in projected company growth are all great signs that Greater Grand Rapids continues to be on the right track.”
Key findings from the March Business Insights Snapshot include:
- Increasing sales: Most area companies (71%) are reporting increasing sales. Of the remaining companies, 27% reported stable sales, and 2% reported a decrease in sales.
- Talent challenges are slightly easing: In March 2022, 52% of area companies reported no recruitment issues, and 48% were having challenges. This year it is reported that 60% have no recruitment issues and 40% have challenges.
- Stable investment in employee training: The majority of area companies (44%) have reported stable investment in employee training, meaning they have no plans to increase or decrease their current training plans. Of the 163 companies The Right Place met with, only one reported a decrease in their training investment in employees.
- Increase in projected company growth:In March 2022, 57% of companies reported they have plans to expand. In March 2023, that number has raised to 62%. This growth typically includes increased headcounts and capital expenditures, while being an indication that area business leaders are feeling confident in the future. Specifically, 46% of companies indicate they plan to increase their rate of hiring.
Of the businesses surveyed, the majority employ under 100 with annual revenues between $1 million and $99 million. Specifically, 80% employ under 100, 15% employ between 100-500, and 4% employ over 500. The revenue ranges included 31% of companies between $1 million and $9.9 million in sales, 28% between $10 million and $99.9 million, 13% over $100 million, and 7% over $1 billion. The businesses surveyed represent a global workforce of 738,236 people.
The Right Place’s coverage area includes Kent, Ionia, Mason, Mecosta, Montcalm, Newaygo, Lake, and Oceana counties. The organization primarily serves businesses in the advanced manufacturing, technology, and health sciences industries.